WTO rules in favor of EU ( declares U.S. steel duties illegal)

Funny, I thought it was from his pea sized brain rattling around inside his huge skull like a bell clapper.

 

Let's see, the big steel producing states in the US are Ohio, West Virginia and Penn. Those wouldn't be SWING states would they? HOW DARE SOMEONE PLAY POLITICS WITH TARIFFS!!!! HOW DARE THEY!!

ps, Ian, shouldn't you be pissed at Bush for this tax on consumers?

 

The sick and sad thing about this is that there is and will be no challenge from the "right" (that is to say, unreconstructed free traders) for Bush. However he plays it, he gets to run against a Democratic opponent who will be inclined to support the status quo in trade or be of a more protectionist bent. Thus, Bush looks "reasonable" on the issue which is out-and-out laughable.

 

FWIW, the Wall Street Journal has been calling Bush a foolish protectionist on this issue for two years on their editorial pages. Doesn't mean that they will like the Dem nominee more than Bush, but at least the WSJ is consistent in their principles.

 

I'm a little surprised to see the Bigsoccer Preki/Zague Squad (Get it? They can only go to their Left.) against these steel tariffs.

Tariffs are taxes.

Don't I always read here about how lowering taxes will lead to higher unemployment, poverty, globalization, etc?

So shouldn't the Bigsoccer Southpaws be in favor of these tariffs because they are higher taxes?

 

Bingo.

It wasn't working and he shouldn't have done it in the first place. Anyway, he can use this as cover and change course.

 

they are out on the streets demonstrating for free trade

 

BBC story

Here's the whopper of the week, from Dubya via McClellan: "These safeguard measures have now achieved their purpose and, as a result of changed economic circumstances, it is time to lift them." I would imagine that the press corps laughed out loud at that.

 

Orange farmers and auto workers must have more pictures of politicians with farm animals than steel workers do.


Tariffs are taxes and a tariff cut is a tax cut. So isn't this a bad thing?

I thought that tax cuts led to unemployment, recessions, poverty, globalization, inflation & Chris Albright being called up to the USMNT.

 

There are two reasons why Bush made the decision that he did: the cost of the penalties was a lot higher than the value of the tariffs, and Florida is more important electorally than Pennsylvania.

Really, this whole thing was a no-win for Bush from the moment he did it, both politically and economically. A smart politician from either party would not have touched this issue.

 

Add in a third reason - US steel consumers, some in politically important states, were furious about these tariffs. And there ought to have been a fourth reason as illustrated by the following quote from Pascal Lamy, the EU trade commissioner:

"I am pleased to see that after nearly two years of litigation, the US has decided to abide by its international obligations."

Of course, international obligations are unlikely to have featured highly in Bush's decision-making process.

 

Maybe we can legalize slavery in the USA? That would do wonders for the textile industry. Let's also eliminate all labor and environmental regulations. That should make us more competitive!

 

C'mon, The industry was battered and needed some time to recover. Tarrifs are necessary some time guys.

But in the case of this EU thing, Bush was dicked either way. Either back American steel, and face the wrath of the EU, or give in like he did, and face the wrath of American steel lobbyists.

 

So what makes steel workers more deserving of protection than auto workers or construction workers?

Manny, I thought you were a conservative? Now, you are in favor of a tax increase? (Tariffs are taxes.)

Where should we send your "Jail Rush Limbaugh" bumper sticker to?

 

The industry was battered because of problems of its own makings. Foreign competitors had restructured and become more efficient whereas US producers were only belatedly doing so. Why should a government prop up inefficient companies at the expense of steel consumers?

And, of course, the US is always preaching to others about free trade. Strange that at the same time it was choosing to break the obligations it had signed up for in this regard.

 

It was hardly just an EU thing. Several other countries were lining up as well once the WTO had ruled the tariffs to be illegal. Bush was dicked by own stupidity in imposing the tariffs in the first place, nothing else.

 

Aid for steel companies in the EU ended a long time ago. Otoh, it's interesting to note that American steel producers are still looking for government aid: this time in the form of the government (i.e. taxpayers) taking on some or all of the steel companies pension obligations.

 

If anyone looked into this - and I'm not about to spend the time now - I think we would find that neither Japan nor Europe (with the exception of, I think, Finland) manufacture much steel. They do, however, have companies that own companies in countries where steel is manufactured. So Europe had nothing to lose by bringing this suit to WTO, otherwise it would be protecting it's own industry.

I think we need to learn to fight better/harder at WTO.

 

I am. I'm not saying steel workers deserve more protection, but US steel was in some big time trouble. I really can't believe you people. i don't care how free trade a president says he is, but if you have a crippled steel industry competing with EU steel that is going at the same or at a lower price, who would you buy from? Then US steel is dealt another blow so to compensate for the losses the industry is forced to start massive layoffs. Then you've got thousands of blue collar americans pissed off at the president.

Honestly this is bewildering.

Here's what was said when the EU first filed a complaint to the WTO:
EU Trade Minister Pascal Lamy said the US decision would hurt the EU in an "unjustified and unfounded way".

"We will do everything we possibly can to protect our own industry and our own jobs," Mr Lamy said.

And what was Bush doing with the tariffs? I think he was doing everything he could to protect our own industry and our own jobs.

I am a conservative, so i don't know where i fall on this issue. But i do know what was the right thing to do. The right thing to do was to tax EU steel to give our own industry time to compete. I don't care if some of US steel's problems were caused by US steel. You have got to learn from mistakes. I think they have. The industry has got a shot in the arm and gives it a chance to compete.

 

Protect EU jobs within the context of international obligations that both the EU and the US have signed up for. Rather different from the Bush Administration's actions which illegaly flouted those commitments.

 

What really irked me is that the industry apparently tried to get additional government help in offsetting the costs of union health and pension benefits.

Excuse me, but the industry signed those agreements with the steelworkers unions, not the American taxpayer. You make your bed, you lay in it.